The International Conference on ESG and Climate Governance, organized by the Sim Kee Boon Institute for Financial Economics at Singapore Management University (SMU), the Centre for Climate Engagement at Hughes Hall, University of Cambridge, and the Climate Governance Initiative, was held in Singapore from June 26th to 28th. Prof. Wang Yao, Director General of the International Institute of Green Finance, and Ms. Mao Qian, Director of the International Cooperation Department, attended the conference and actively contributed to speeches and discussions.
At the conference, Prof. Wang Yao joined Prof. Cristian Rodriguez Chiffelle of Harvard University, Alvin Lee of NASDAQ, and Prof. Simon Learmount of the University of Cambridge in discussions regarding the best practices for board-level climate action. During her speech, Prof. Wang Yao underscored the role of ESG in assessing a company’s capacity for sustainable development in relation to climate change and carbon neutrality. She emphasized the significance of integrating ESG principles and strategic planning at the board level. This includes establishing short-term, medium-term, and long-term development goals and outlining actionable strategies in areas such as business operations, systems, and influence. These efforts aim to drive holistic sustainable development strategies within companies. Furthermore, Prof. Wang Yao drew upon Kangmei Pharmaceutical as a case study to illustrate the roles and obligations of independent directors.
During the regional sub-forum discussing best practices for climate action at the board level, Ms. Mao Qian specifically addressed the financial risks, opportunities, and investor pressures that China faces during its transition to a net-zero economy. In her comprehensive speech, Ms. Mao Qian extensively covered the initiatives taken by different stakeholders and the consequent investment opportunities and potential risks associated with the “dual carbon” targets. Particularly, she placed special emphasis on the investment opportunities arising from the advancements in renewable energy in recent years, as well as the distinctive efforts made in green inclusive finance within the Chinese context.
While the global efforts and strategies to tackle climate issues differ, the conference specifically recognized that the laws and regulations implemented by the United States and Europe will have an impact on companies in Asia and Africa, given the interconnected nature of global supply chains and the strengthening of import regulations.Boards of directors globally should prioritize their focus on immediate, intermediate, and long-term business risks and opportunities. It is clear that there is a need for further capacity-building at various levels to ensure that all board members have a thorough understanding of the consequences arising from current environmental and social issues. Effective governance is essential to drive informed decision-making and achieve sustainable long-term development.